CIFL revival with Rs.1 bln capital infusion

sriranga wrote:People’s Leasing Company (PLC), Managing Agent of Central Investment and Finance Company PLC (CIFL), is looking for new investors willing to part with Rs.1 billion under the Business Restructuring Plan (BRP), informed sources said.

Negotiations are underway to transfer a valuable land belonging to Aspic Corporation of former CIFL Chairman Deepthi Perera to PLC, an official who wished to be anonymous told Business Times. The Central Bank (CB) is also considering pumping in Rs. 500 million under the Liquidity Support Scheme (LSS), he added. The scheme was introduced by the Central Bank (CB) recently for any licensed finance company (LFC) that faces liquidity constraints, to enable them to revive and restructure its operations. According to Central Bank sources, the liquidity support would be provided via the LSS of the Sri Lanka Deposit Insurance Fund (SLDIF), and would be granted on a case by case basis, after an assessment of the liquidity position of the particular LFC.

The regulator however didn’t take any remedial action when it detected serious malpractices committed by CIFL directors in a 2011 audit probe report which has been filed in courts revealed. When asked as to why the CB has failed take action at that time, H. M. Ekanayake, Director of the CB’s Department of Supervision of Non-Bank Financial Institutions said that he cannot comment on a matter which is before courts.

At present the CIFL is not paying back deposits as it is facing difficulties even to meet day-to-day expenses of the company. The Business Restructuring Plan (BRP) has proposed the conversion of 60 per cent of existing public deposits worth Rs. 3.4 billion into non-voting shares subject to the consent of the depositors and to pay the remaining deposits after a grace period of two years. It had further proposed to pay an interest rate of 5% on outstanding deposits from the date the capital infusion takes place.
http://www.sundaytimes.lk/131027/business-times/cifl-revival-with-rs-1-bln-capital-infusion-66723.html

sriranga wrote:People’s Leasing Company (PLC), Managing Agent of Central Investment and Finance Company PLC (CIFL), is looking for new investors willing to part with Rs.1 billion under the Business Restructuring Plan (BRP), informed sources said.

Negotiations are underway to transfer a valuable land belonging to Aspic Corporation of former CIFL Chairman Deepthi Perera to PLC, an official who wished to be anonymous told Business Times. The Central Bank (CB) is also considering pumping in Rs. 500 million under the Liquidity Support Scheme (LSS), he added. The scheme was introduced by the Central Bank (CB) recently for any licensed finance company (LFC) that faces liquidity constraints, to enable them to revive and restructure its operations. According to Central Bank sources, the liquidity support would be provided via the LSS of the Sri Lanka Deposit Insurance Fund (SLDIF), and would be granted on a case by case basis, after an assessment of the liquidity position of the particular LFC.

The regulator however didn’t take any remedial action when it detected serious malpractices committed by CIFL directors in a 2011 audit probe report which has been filed in courts revealed. When asked as to why the CB has failed take action at that time, H. M. Ekanayake, Director of the CB’s Department of Supervision of Non-Bank Financial Institutions said that he cannot comment on a matter which is before courts.

At present the CIFL is not paying back deposits as it is facing difficulties even to meet day-to-day expenses of the company. The Business Restructuring Plan (BRP) has proposed the conversion of 60 per cent of existing public deposits worth Rs. 3.4 billion into non-voting shares subject to the consent of the depositors and to pay the remaining deposits after a grace period of two years. It had further proposed to pay an interest rate of 5% on outstanding deposits from the date the capital infusion takes place.
http://www.sundaytimes.lk/131027/business-times/cifl-revival-with-rs-1-bln-capital-infusion-66723.html

hello wrote://Negotiations are underway to transfer a valuable land belonging to Aspic Corporation of former CIFL Chairman Deepthi Perera to PLC, an official who wished to be anonymous told Business Times.//              

Doesn't matter this paper article is true or not ... may be rumor...

but we can sure some one ready to play with CIFL... So get ready guys...at least we can play with CIFL this whole week...

*** Careful, first decide before buy which level you enter... I thing tomorrow we can enter any level ... then ????

As Jana said may be they can halt trading for CLARIFICATION TO A NEWSPAPER ARTICLE..

then it will fly..??!!   

dineshfernando wrote:CIFL was run by a set of crooks and fraudsters. I feel very sorry for people who have deposited their pension and life long savings. Those may not have had enough knowledge to check the background of the directors and the company.

Companies Act has to be severely followed by SEC and the Central bank. Especially, the Directors and managers should have clean hands without any criminal charges.

The assets of the Directors must be seized and paid back to these poor depositors.

Wondering how these crooks can cheat these old retired investors. They will have to repay for these sins for generations.